YAM Finance has lost control of governance
YAM Finance has lost control of governance
Blockchain

YAM Finance has lost control of governance

By Marco Cavicchioli - 13 Aug 2020

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A bug in the rebasing function caused YAM Finance to lose control of on-chain governance

This is what was revealed on the project’s official blog, where it is explained that the bug has allowed the generation of excess reserves, making it impossible to take any future governance action. 

The bug was in the code and was a writing error of the function that manages the total supply. 

The problem does not concern the funds held by users, or the resources locked in staking smart contracts, but only governance. 

Because of this bug, about $500,000 of yCRV was added to YAM reserves, and although the problem could have been fixed by the community before the next rebase, scheduled for this morning, this did not happen. 

Yam Finance, goodbye governance and goodbye value

The co-founder of Yam Finance, Brock Elmore, tweeted

“I’m sorry everyone. I’ve failed. Thank you for the insane support today. I’m sick with grief”.

So although the bug was discovered in time, it was not possible to apply the necessary corrective actions to resolve it before it became final. 

So now the project has completely and definitively lost on-chain governance. 

It is not uncommon for a project that has grown so quickly, and landed so quickly on the markets, to have bugs in the code, but these are usually corrected during the early stages of deployment. 

In this case, however, the significant sudden growth has not made it possible to intervene to solve the problem after it was identified. 

The YAM token, which was worth around $150 yesterday, dropped almost instantly to $13, losing more than 91% of its value in just a few minutes. 

Then the collapse continued until it reached $2.6, a loss of more than 98% from yesterday’s high of $164.

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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